It was quite boaring to read that “Big B had gifted a Bently car to Ab Jr” on his birthday.
Haven’t we had enough of all those non-news. Yes, but there is one small piece of advice hidden in that news – about saving tax.
According to latest Income tax laws, you can “GIFT” a portion of your earnings to near relatives other than your spouse. This gift can be utilized by your parents to invest in senior citizen oriented high yield fixed rate instruments or even play the roulette at the share markets.
Isnt it cool to pay 10% tax as they are already senior citizens rather than your hefty 33.3% bracket?. This is how wealth is created, multiplied and inherited!!
Cavet: Check with your chartered accountant regarding creation of a proper “gift deed” and dont forget to include that as part of your Income Tax returns.